Corporate - LAKSHMI NARAYANAN Cognizant Technology Solutions

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MR. NEERAJ KANWAR, MD of Apollo Tyres 

Source: www.moneycontrol.com 

MR. NEERAJ KANWAR, MD of Apollo Tyres  

Margins will rise if raw material costs fall 

We have grown by 36% on a total consolidated basis in Q3FY12. All three of our zones - India, South Africa and Europe have done extremely well. India has grown by nearly 47% in Q3, South Africa has grown by 27% and Europe has grown by nearly 26%.

India has done well on the back of truck/bus radials and passenger car radials that have been launched.

Europe has done well because the winter season has been good in Europe and both the Apollo brand and the Vredestein brand are selling very well in Europe.

The margins had eased up and we have come to a 10.15% operating profit margin (OPM). From here we believe that if all stays well and the raw material prices remain stabilised, I believe that our results will be far better from what they are in Q3 going forward

We are launching various new products in both in India as well as Europe for different product categories, cars and trucks and therefore I am pretty bullish that we will have much better results in Q4 on the topline and on the bottomline.

We are looking at various markets for expansion. We have started selling in the Brazilian market very aggressively.

Mr. LAKSHMI NARAYANAN, Vice-Chairman of Cognizant Technology Solutions 

Source: Business Line

Mr. LAKSHMI NARAYANAN, Vice-Chairman of Cognizant Technology Solutions 

Euro zone crisis was only a blip on the radar and would not affect the Indian IT industry in the long run 

On Euro zone crisis affecting the Indian IT industry - Given the kind of role that the Indian IT industry is playing I don't think factors such as debt, fiscal deficit etc, which those countries are trying to solve, impact us that much.

Obama's fresh rant against outsourcing - It was much stronger during the last elections. This time also, we think there will be an impact but much less, because we are prepared thanks to the experience four years ago.

One solution is to hire locally- Yes; once you understand the broad sentiment, it gives us a direction. What Obama does today in US; surely Europe is going to do tomorrow.

Cognizant is looking at new markets beyond Europe and US -Yes, we are looking at the Asia Pacific region; our strategy has been to invest.

How critical is M&A to your success and growth path?  We will continue with these acquisitions. Very critical, particularly in Europe, because along with local talent you also get the culture and way of doing business.

Are IT companies on the hiring path again? -Yes. Also, you should look at the number of captives. So many of these overseas companies are investing, banks are setting up facilities. Dell, HP, etc are all investing and hiring in India.

KIRAN MAZUMDAR-SHAW, CMD of Biocon 

KIRAN MAZUMDAR-SHAW, CMD of Biocon  

Source: Business Standard 

Despite setback, we sense promise in oral insulin molecule research

On the better margin business: Our business is modeled around five growth verticals: small molecules, biosimilars, novel molecules, branded formulations and research services. Some of these businesses may have better margins, but all of these are high investment businesses with relatively complex entry barriers. We do not see the prospect of many players in this field making the play difficult for us.

On roadmap for product commercialization: Commercialization for our pipeline is still a distant target, but its progress is very encouraging. We are in talks with prospective partners for our late-stage molecules.

On Biocon research services tapping public markets:- We are clear about our intention to go public with our research services business in the next 12-18 months. For YTD FY2012, this business has grown by 28%. We are in no hurry to raise funds; will go to market at an opportune time. We are cash-positive. With the current net cash position at Rs 580 cr, we are not desperate for funding.

On licensing income: Licensing income, as you know, is lumpy and has inherent periodic variability. Last year, there was a sizeable one-time licensing income from Pfizer, which is not there this quarter. However, it is best viewed on an annualized basis, since it is linked to development milestones which cannot always be achieved every quarter to be reflected in quarterly earnings. Going forward, we see some of our licensing discussions reach fruition over the next 12 months.